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2011/9/30 1 9/30/2011 [email protected] 1 Impact of 3R-Related Policies on Resource Management Anthony SF Chiu Professor, De La Salle University Chair, Asia Pacific Roundtable for SCP Sep 11, 2011 Bangkok, Thailand Outline of the Presentation 1. Introduction of SPGESCP 2. Missing Link 3R flow 3. Need for connecting 3R and impact on Policy Options

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Page 1: Impact of 3R-Related Policies on Resource Management file2011/9/30 1 9/30/2011 anthony.chiu@dlsu.edu.ph 1 Impact of 3R-Related Policies on Resource Management Anthony SF Chiu Professor,

2011/9/30

1

9/30/2011 [email protected] 1

Impact of 3R-Related Policies

on Resource Management

Anthony SF Chiu Professor, De La Salle University

Chair, Asia Pacific Roundtable for SCP

Sep 11, 2011 Bangkok, Thailand

Outline of the Presentation

1. Introduction of SPGESCP

2. Missing Link – 3R flow

3. Need for connecting 3R and

impact on Policy Options

Page 2: Impact of 3R-Related Policies on Resource Management file2011/9/30 1 9/30/2011 anthony.chiu@dlsu.edu.ph 1 Impact of 3R-Related Policies on Resource Management Anthony SF Chiu Professor,

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2

3

Second: Reuse

Use items repeatedly.

Landfill disposal

Third: Material Recycling

Recycle items which cannot

be reused as raw materials.

First: Reduction

Reduce waste, by-products, etc.

Fifth: Proper Disposal

Dispose of items which cannot

be used by any means.

Fourth: Thermal Recycling

Recover heat from items which

have no alternatives but

incineration and which cannot

be recycled materially.

Treatment

(Recycling, Incineration, etc.)

Natural Resources

Input

If the above-mentioned order seems not to contribute to the reduction of the environmental load, exceptions are permitted so that different orders can be adopted.

Production

(Manufacturing, Distribution, etc.)

Consumption

Discarding

Japan info slides are sourced from Jiro Hiratsuka, MOEJ 2004

Philippine Macro economic Profile

Indicators 2006 2007 2008 2009 2010

GDP (billion PhP,

current prices) 6,031 6,649 7,409 7,679 8,513

GDP (growth %,

constant 1985

prices)

5.3 7.1 3.7 1.1 7.3

Agriculture 3.8 4.9 3.1 0.0 -0.5

Industry 4.5 6.8 4.9 -0.9 12.1

Services 6.5 8.1 3.1 2.8 7.1

Investment (million PhP)

357,003 385,804 464,221 314,114 -

Local (%) 53.5 44.5 60.6 61.2 - Foreign (%) 46.5 55.5 39.4 38.8 -

- The Philippine economy grew over the past five years, but not as intense as

other Asian countries.

- The services sector appears to be have sustained the economic growth of the

country.

- Investments are weak, specifically foreign investment in 2009. NSCB, 2011; DTI, 2010

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3

Socio-economic Indicators Indicators 2006 2007 2008 2009 2010

Employment rate

(%, January) 91.9 92.2 92.6 92.3 92.7

Underemployment

(%, January) 21.3 21.5 18.9 18.2 19.7

CPI (2000=100) 137.9 141.8 155.0 160.0 166.1

Inflation rate (%) 6.2 2.8 9.3 3.2 3.8

GNI per capita

(US$, current rate) 1,310 1,510 1,770 1,860 2,050

GNI per capita,

PPP (current

international $)

3,220 3,490 3,670 3,670 3,930

Gini coefficient 0.4580 - - 0.4484 -

- Employment rate show no signs of improvement for the past years.

Underemployment is also significant.

- Inflation is high and can be a threat to growth.

- The Gini coefficient remained high.

NSCB, 2011; WB, 2011; UN Human Development Report 2009

GDP & Employment by Economic Sector

Economic

Sector

GDP Share (%)

2006 2007 2008 2009 2010

Agriculture 18.79 18.40 18.31 18.11 16.79

Industry 32.51 32.42 32.78 32.13 33.55

Services 48.71 49.18 48.92 49.75 49.66

Economic

Sector

Employment Share (%)

Jan-06 Jan-07 Jan-08 Jan-09 2010

Agriculture 36.54 31.85 35.00 34.57 33.20

Industry 15.07 13.62 14.78 14.17 15.00

Services 48.38 54.53 50.22 51.25 51.80

- In terms of output, the services sector contributes roughly half of the GDP of

the Philippines, followed by the industry and agriculture. [S > I > A]

- In terms of livelihood, the services sector generates the most job followed by

agriculture and industry. [S > A > I]

NSCB, 2011; NSO, 2011

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4

Investment by Economic Sector

Economic

Sector

Investments Share (%)

2005 2006 2007 2008 2009

Agriculture 0.33 1.33 0.48 0.54 0.91

Industry 78.04 60.89 68.61 55.13 59.46

Services 21.62 37.78 30.90 44.33 39.62

In terms of investments, investment in the industry sector is on the decline, but

still contributes the largest share. [I > S > A]

DTI, 2010

Philippine Development Plan 2011-2016

• PDP 2011-2016 emphasizes inclusive growth: “sustained

growth that creates jobs, draws the majority into the

economic and social mainstream, and continuously reduces

mass poverty”

• Vision for the Philippines in relation to economy,

environment and society: “an organized and widely-shared

rapid expansion of our economy through a government

dedicated to honing and mobilizing our people’s skills and

energies as well as the responsible harnessing of our

natural resources”

NEDA, 2011

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5

• Among the 10-point agenda of the PDP 2011-2016

related to ENR are:

• Competitive industry and services sectors

• Competitive and sustainable agriculture and fisheries

sector

• Accelerating infrastructure development

• Conservation, protection and enhancement of the

ENR

PDP 2011-2016

NEDA, 2011

3. Philippines Resource

Base

3.2. Policies for Resource

Use and Management

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6

Aspect Policy

Land/ Forestry RA 7279: Urban Development and Housing Act of 1992

EO 318: Promoting Sustainable Forest Management in the Philippines

Agriculture &

Fisheries

RA 6657: Comprehensive Agrarian Reform Law

EO 481: Promotion and Development of Organic Agriculture in the

Philippines

RA 8550: Philippine Fisheries Code of 1998

RA 8435: Agriculture and Fisheries Modernization Act of 1997

Mining RA 7942: Philippine Mining Act of 1995

RA 7076: People’s Small-Scale Mining Act of 1991

Energy RA 9367: Biofuels Act of 2007

RA 9513: Renewable Energy Act of 2008

Water

resource

PD 1067: Water Code of 1976

RA 8041: National Water Crisis Act of 1995

DAO 2002-08: Coastal Environment Program

RA 9275: Clean Water Act of 2004

Air quality RA 8749: Clean Air Act of 1999

DAO 2000-18: Chemical Control For Ozone Depleting Substances

Climate

change RA 9729: Climate Change Act of 2008

Ecotourism EO 111: National Ecotourism Strategy

Oil pollution RA 9483: Oil Pollution Compensation Act of 2007

Waste

RA 9003: Ecological Solid Waste Management Act of 2000

RA 6969: Toxic Substances and Hazardous and Nuclear Wastes Control

Act of 1990

• The General Appropriations Act (RA No.

10147) is the summary that shows the

allocation of government expenditure for a

given fiscal year.

• 2011 budget: PHP 1,000,387,764,000 or

USD 23,373,059,718

Fiscal Framework

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7

• PHP 51,456,313,000 or USD 1,201,375,270 (5.14%) – allocation for the resource use and management in the Philippines

Budget for Management of ENR

94.857%

3.8% 0.113% 1.23%

Others

Agriculture

Energy

Forestry, Land, Mineral, and Water

General Appropriations Act of 2011

• European Union allocates

primarily on the

preservation of

environment

• Vietnam allocates a huge

portion of its budget in

agriculture

• Philippines and

Malaysia’s allocation is

similar in terms of

proportion to total

expenditure

Comparison of Budget Allocation

Philippines

Vietnam Malaysia European

Union

Percentage of total expenditure

5.14 25.18 4.17 42.5

Monetary Terms(Billions, USD)

1.2 6.3 2.98

0

5

10

15

20

25

30

35

40

45

Pe

rce

nta

ge

Funds allocated for use and management of resources (%)

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8

Oligopoly

Energy

Minerals

Water

Similar to Perfect Competition

Agriculture

Forestry

Land

Market Structures

• Sectors are classified based on the volume of market

players and market structure assumptions

• Oligopolistic markets assumes few players and many

barriers for new firms

• Perfectly competitive markets assumes huge volume of

players and firms has no market influences

3. Philippines Resource

Base

3.4. Measuring Resource

Intensity (attempt)

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9

Source: WRI et al.,2000; Rapera, Corazon

The Basic MFA Model

Domestic Environment

Stocks

Economic

Processing

Air,

Water Water

Vapour

DE

DHF

Imports

FHF

TMR

Immigrants

DMI DPO

DHF

Exports

TDO

Emigrants

MEASURES USED

INPUT Total Material

Requirement (TMR)

Direct Material Input (DMI) = Domestic

Extraction (DE) + imports

Domestic Hidden Flows (DHF)

Foreign Hidden Flows (FHF)

OUTPUT Domestic Processed

Output (DPO )

Total Domestic Output (TDO) = Domestic

Processed Output (DPO ) + DHF

Direct Material Output (DMO)

Total Material Output (TMO)

BALANCE

Net Addition to Stocks (NAS) = DMI + Air and

Water – Exports – DPO – Water Vapour

Imports and Exports

Air, Water, Water Vapour

Page 10: Impact of 3R-Related Policies on Resource Management file2011/9/30 1 9/30/2011 anthony.chiu@dlsu.edu.ph 1 Impact of 3R-Related Policies on Resource Management Anthony SF Chiu Professor,

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10

Social and Economic Indicators

• Total Materials Requirement (TMR)

• TMR/capita

• TMR/GDP

• Direct Material Inputs (DMI)

• DMI/Capita

• Imports / Capita

• Hidden Flows/Capita

Classification of Materials

Domestic • Non - Renewable

• Energy Carriers

• Metal Ores

• Industrial Minerals

• Construction Materials

• Excavation

• Renewable • Plant Biomass

• Animal Biomass

• Soil Erosion

• .

Imports • Non - Renewable

• Energy Carriers

• Metal Ores

• Industrial Minerals

• Construction Materials

• Excavation

• Renewable • Plant Biomass

• Animal Biomass

• Semi-Manufactures

• Final Products

• Hidden Flows • Imported Raw Materials

• Imported Semi-Manufactures

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DOMESTIC PRODUCED

98 99 00 01 02 03 04 05 06 07 0

8

0

9

1

0

NON -

RENEWABLE

Energy Carriers X X X X X X X X X X m m m

Industrial Minerals X X X X X X X X X X X

Construction

Materials

X X X X X X X X X X X

RENEWABLE

Agriculture X X X X X X

Forestry X X X

Livestock X X X X X X

Fish X X X X X X

HIDDEN FLOW

Soil Erosion

Excavation

IMPORTS 98 99 00 01 02 03 04 05 06 07 0

8

0

9

1

0

NON -

RENEWABLE

Energy Carriers X X X X X X X X X X m m m

Industrial Minerals X X X X X X X X X X X

Construction

Materials

X X X X X X X X X X X

RENEWABLE

Agriculture X X X X X X

Forestry X X X

Livestock X X X X X X

Fish X X X X X X

SEMI-

MANUFACTURES

FINAL PRODUCTS

HIDDEN FLOWS

Excavation

Soil Erosion

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EXPORTS 98 99 00 01 02 03 04 05 06 07 0

8

0

9

1

0

NON -

RENEWABLE

Energy Carriers X X X X X X X X X X m m m

Industrial Minerals X X X X X X X X X X X

Construction

Materials

X X X X X X X X X X X

RENEWABLE

Agriculture X X X X X X

Forestry X X X

Livestock X X X X X X

Fish X X X X X X

SEMI-

MANUFACTURES X X X X X X

FINAL PRODUCTS

HIDDEN FLOWS

Excavation

Soil Erosion

Total Material Requirement

(TMR) Indicators

8,428,739,811 8,868,305,032

9,752,562,296

8,825,429,997 8,292,202,303

9,386,591,289

10,620,226,83

4

9,473,045,200

-

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

TOTAL MATERIAL REQUIREMENT (TMR)

TMR

103.85 107.05 115.38 104.29 96.15 106.84 118.70 104.01

2,353.93 2,407.03

2,553.92

2,201.70

1,938.82

2,094.62

2,251.85

1,883.95

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

TOTAL MATERIAL REQUIREMENT INDICATORS

TMR per Capita TMR per GDP

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13

Direct Materials Input (DMI)

Indicators

110,171,128 109,204,571

117,698,404

109,105,573

134,918,505 136,470,448 139,068,153

147,311,292

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

DIRECT MATERIAL INPUT (DMI)

DMI

1.36 1.32 1.39 1.29 1.56 1.55 1.55 1.62

30.77 29.64

30.82

27.22

31.55 30.45

29.49 29.30

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

DIRECT MATERIALS INPUT (DMI) INDICATORS

Commodity per Capita (DMI per Capita) DMI per GDP

• Energy

Resource Intensity Data

0

5

10

15

20

25

30

35

40

45

50

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Energy to GDP (TOE/Php)

Oil to GDP (BBL/Php)

Electricity to GDP (KWh/Php)

Source: Department of Energy

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Energy to

GDP (TOE/Php

1M)

41.5 40.4 38.2 36.1 35.1 33.3 31.8 30 28.5 28.6 27.7

Oil to GDP

(BBL/Php

100,000)

14.1 12.8 12.1 11.5 10.8 9.8 9.1 8.2 7.9 7.5 7.3

Electricity to

GDP

(KWh/Php)

45.1 46.5 47.5 46.9 48.8 48.5 46.7 44.5 43.6 42.9 43.3

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14

Effect to GDP and Importance

for the Poor (Informal Sector?)

• The agriculture, fisheries and forestry classification in GDP reflects an increasing trend on the total value of resources consumed.

• With respect to total GDP, it resembles a downward sloping trend with much of the impact felt on the last year of the period covered.

• While food production shows a steady rise, its contribution to GDP becomes less through time.

Effect to GDP and Importance

for the Poor (Informal Sector?)

• The same declining trend may be

observed in the electricity, gas and water

category while the opposite may be seen

in mining and quarrying where its

contribution to GDP rises.

• Other components of GDP may have had

greater contribution to the economy than

the former (services sector).

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BAS; NSCB

Effect to GDP and Importance for the Poor (informal sector?)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Agriculture, Fisheries and Forestry

20.16 20.06 19.84 19.62 19.06 18.79 18.40 18.31 18.11 16.79

Mining and Quarrying 1.02% 1.48% 1.65% 1.59% 1.65% 1.47% 1.74% 1.70% 2.05% 2.26%

Electricity, Gas and Water 3.31% 3.30% 3.25% 3.18% 3.11% 3.14% 3.13% 3.24% 3.11% 3.15%

Percentage Share of Selected Value Added Accounts to Total GDP (in %)

• While the contribution of the Agriculture, Fisheries and Forestry to GDP has gone low, employment has mildly followed the same trend with slight decreases from 32.77% in 2002 to 31.75% in 2008

• With regard to poverty incidence, fishermen and farmers account for the highest percentages for all categories, slightly going up in 2006 with 49.90% and 44%, respectively.

Effect to GDP and Importance for the Poor (Informal Sector?)

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Philippine Statistical Yearbook (PSY); NSCB

Effect to GDP and Importance for the Poor (Inf Sec?)

2000 2001 2002 2003 2004 2005 2006 2007 2008

% of Employed in Agriculture to Labor Force

32.77% 32.45% 32.25% 32.79% 32.26% 32.02% 31.75%

% of Agriculture, Fisheries and Forestry to GDP

19.78% 20.16% 20.06% 19.84% 19.62% 19.06% 18.79% 18.40% 18.31%

Poverty Incidence of Farmers 46.60% 42.40% 44.00%

Poverty Incidence of Fishermen 50.80% 43.60% 49.90%

0

0.1

0.2

0.3

0.4

0.5

0.6

Selected Macroeconomic Indicators

32

Material Flow Accounts (MFA) of Japan

The material flow accounts for FY2000 roughly show:

1) Total material input is about 2.1 billion tons

2) Amount of cyclical use (reuse + recycling) is 218 million tons

3) Amount of final disposal is 56 million tons

(Unit: million ton)

Domestic resources

(1,124)

Exports(132)

Returned to nature

(84)

Final

disposal

(56)

Reduction(241)

Amount of cyclical use [reuse+recycle] (218)

Net addition to stock(1,107) Resources

(718)

Products

(70)

Natural resources

and the like input

[Direct Material

Input]

(1,912) Energy consumption(420)

Imports

(788)

Total material

input

(2,130)

Generation of

waste and the like

(600)

Food consumption(127)

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33

Three Indicator Based on MFA

• Resource Productivity (input)

• Cyclical Use Rate (cycle)

• Final Disposal Amount (output)

34

0

250

500

1975 1980 1985 1990 1995 2000 2005 2010 2015

10

00

ye

n p

er

ton

GDP

DMI* (Input of natural resources and the like) *DMI: Direct Material Input

390,000 yen per ton

(40% improvement from FY2000)

Resource Productivity

=

Input: Resource Productivity

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35

0

5

10

15

1975 1980 1985 1990 1995 2000 2005 2010 2015

%

Amount of cyclical use (reuse + recycling)

DMI + Amount of cyclical use

Cyclical Use Rate

=

14 %

(40% improvement from FY2000)

Cycle: cyclical use rate

36

0

50

100

150

1975 1980 1985 1990 1995 2000 2005 2010 2015

Mill

ion

to

ns p

er

ye

ar

Output: Final Disposal Amount

= Final disposal amount of waste Final Disposal Amount

28 million tons

(50% reduction from FY2000)

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37

Measures by national

government

• Secure material cycle in nature

• Change lifestyle [Re-style]

• Promoting businesses relating a Sound Material-Cycle Society

• Realize Safe and secure treatment and disposal of waste

• Establish the basis for supporting a Sound Material-Cycle Society

38

Measures by local

governments

• make efforts in community making, including sorted collection and appropriate management of waste, promotion of 3Rs, and improvement of waste treatment facilities

• cooperate with business and private organizations, including NPOs and NGOs, to assist local residents to change their lifestyles (as a coordinator and main animator of the efforts of the community)

• recommend environment conscious green products and services or products made in the local area

• take the initiative in green purchasing, implementation of an environment management system (as a business organization)

• formulate the fundamental plan to promote the establishment of a SMCS in the local area

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39

Material Flow Accounts by local

government

Material Organic

Resources Resources

Stock of construction,

infra-structure and machinery

Provisions to

process,fertilizer,

feed,seeds,etc.

53

(Macadam, iron, etc)

32

(Petroleum,coal,etc)

5 Consumption(Provisions taken)

5 Reduction of waste by management

3 Final disposal of waste

8 Recycled resources (4)

ship and bring between Aichi prefecture and other region over bring 3 (Petroleun,coal,etc.)

Consumption

of fuel

29

Other

(1)

9

90

To discharge

6

Recycled resources

18

New stock

72 Natural

Resources

90

[Section 1]

Consumption

of resources

108

[Section2]

Manufacturing

of products

88

Ship of

final

products

(2)

270

Bring of

final

products

(2)

330

[Section 3]

Sell and

purchase

94

[Section 4]

New Stock

Consumption

Discharge

100 Management

and Disposal

15

Fossil

Material

Fuel

Valuables (3)

7

(1)Growth of agricultural products by photosynthesis,over bring of primary or secondary products,inflow of water to concrete,etc

(2)“Ship”includes“Export”and“Bring”includes“Import”.

(3)Valuables:articles that can be bought

(4)Recycled resources:waste(invalid articles)reutilised

Some prefectures are developing their MFA (ex. Aichi Pref.)

Please visit our website:

http://www.aprscp.net

Or e-mail us at:

[email protected]

Please Participate in the UNEP-IGES

mini Roundtables and events at

The 10th Asia Pacific Roundtable for

Sustainable Consumption and

Production

Jogyakarta, Indonesia

9-11 November 2011

Thank you very much!